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If you are planning on making this your final move, my advice would be to rent for a year or so in the NE heights and then explore the city to find out what kind of neighborhood you want to buy in.
Most of the big hotel chains are on the east side near the I-25 corridor which is convenient both to the valley and the heights.
ABQConvict
We're strongly considering that. Our only issue with that is capital gains taxes. We're going to fold all our current home equity into the new house (and hopefully have enough to do without a mortgage), but the Feds limit the amount of time you have for investing your sale proceeds in a new primary residence before nailing you with a capital gains tax - IIRC used to be 90 days; don't know if that's been changed.
What are the average home prices in the NE heights? I have a feeling they'll be out of our price range, but it doesn't hurt to ask...
What are the average home prices in the NE heights? I have a feeling they'll be out of our price range, but it doesn't hurt to ask...
You would be surprised. You can find some older houses (18-25 y.o.) for less than $300,000 easily. However if you are looking for brand new houses, you better plan on having atleast half a million for a small house. Look into Nor Este Estates (just north of La Cueva) and look at houses around that area. They will be more affordable. Look into the houses just south of Paseo Del Norte Blvd. , they will be more affordable. Keep your eyes open.
> ... Our only issue with that is capital gains taxes. We're going to fold
> all our current home equity into the new house ... the Feds limit the
> amount of time you have for investing your sale proceeds in a new
> primary residence before nailing you with a capital gains tax - IIRC
> used to be 90 days; don't know if that's been changed.
If you are a single person, you can keep $250k of your gain without
having to pay any tax. It is $500k if you are married. You don't
have to do anything with the money and there is no time limit.
Here it is in a nutshell:
# Sale of house – if you sell a house and occupy it as a principal residence
# for at least two years out of 5 years before the sale you may exclude
# from income gains up to $250,000 if single and up to $500,000 if married
# and filing jointly. You do not have to buy replacement property. The
# exclusion may be claimed again providing there is a two year spread
# between the first exclusion. If you used the residence for less than two
# years, you may avoid tax if you sold because of a change of a job
# location, poor health or unforeseen circumstances.
Thank you, sir! That helps. It's been quite a while since I've had any capital gains to deal with (including home sales - we've been here for a while...). You information comes as a relief.
abqsunport:
Thanks. We're looking in the $200-$250K range at most; we REALLY don't want to carry a mortgage if at all possible. We don't mind older (our current house was built in 1948), so that's not an issue as long as it's in good repair.
Ask your Realtor about Mossmans, a bunch of nice houses developed in the near NE Heights in the 1960's - 70's.
They are not terribly expensive, tasteful if not spectacular architecture, are centrally located between downtown and the mountains and they have mature shade trees.
The neighborhoods are a mix of people from young families to retirees who have owned the houses since they were built.
They are also located close to the Malls, bikepaths, parks and restaurants.
We're looking in the $200-$250K range at most; we REALLY don't want to carry a mortgage if at all possible.
If I were you, try to invest the equity in solid dividend yielding mutual funds. With some research, you can count on 8-9% dividends, and not in any risky funds either.
Take the dividends and pay the 20 or 30 yr mortgage as best you can, supplementing with new earnings. The advantage is that the mutual funds continue to grow over 20 years, and at the end of the mortgage you have your house paid off AND the original capital has grown too. Buying a house for cash means you'll just have the house.
That's what we've been planning when we sell, and it makes total sense whichever way you run the numbers.
hahahaha! ABQconvict - that was funny. I can't wait to use it on my family when I move out to NM the end of this month. One by one we have all been lured from Massachusetts to NM, and I am the seventh! It truly is the land of entrap - er, uh, I mean enchantment.
If I were you, try to invest the equity in solid dividend yielding mutual funds. With some research, you can count on 8-9% dividends, and not in any risky funds either.
Take the dividends and pay the 20 or 30 yr mortgage as best you can, supplementing with new earnings. The advantage is that the mutual funds continue to grow over 20 years, and at the end of the mortgage you have your house paid off AND the original capital has grown too. Buying a house for cash means you'll just have the house.
That's what we've been planning when we sell, and it makes total sense whichever way you run the numbers.
Good advice - but with the roller-coaster path the stock market has been on recently (I'm getting just a little nervous...), we'll probably park the proceeds in some short-term CDs temporarily while we're looking for a home. We've decided to take ABQConvict's advise; if we like the area after our sight-seeing trip, we'll rent for 6-12 mos. Gives me a chance of landing a decent job, we can get a good feel for the city and take our time with house-hunting, and I'll have a better feel for what the stock market is up to...
Time to make some travel plans...
Sincere thanks to all. I'll post our thoughts when we return.
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), we'll probably park the proceeds in some short-term CDs temporarily while we're looking for a home. We've decided to take ABQConvict's advise; if we like the area after our sight-seeing trip, we'll rent for 6-12 mos. Gives me a chance of landing a decent job, we can get a good feel for the city and take our time with house-hunting, and I'll have a better feel for what the stock market is up to...
